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Welfare Policy and Labour Supply of Immigrants in Australia

Author

Listed:
  • Vincent Law

    (The Australian National University (ANU) - Crawford School of Public Policy)

Abstract
This paper investigates the impact of social security payments on the labour supply of recent immigrants to Australia after the policy change. This research uses the first wave of two sets of Longitudinal Survey of Immigrants to Australia (LSIA) data as treatment group and Survey of Income and Housing (SIH) as control group to analyse the short-term immigrant labour market outcomes before and after the policy change. Employing difference-in-differences estimators and propensity score matching procedures, this study suggests that welfare reform caused a substantial increase in the employment of immigrants. This might imply that restricted access to welfare produced a higher proportion of new immigrants who more actively looked for jobs.

Suggested Citation

  • Vincent Law, 2011. "Welfare Policy and Labour Supply of Immigrants in Australia," Crawford School Research Papers 1109, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:crwfrp:1109
    as

    Download full text from publisher

    File URL: http://www.crawford.anu.edu.au/pdf/crwf_ssrn/crwfrp_1109.pdf
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    References listed on IDEAS

    as
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    4. Deborah A. Cobb-Clark, 2003. "Public policy and the labor market adjustment of new immigrants to Australia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(4), pages 655-681, November.
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    9. Boeters Stefan & Gürtzgen Nicole & Schnabel Reinhold, 2006. "Reforming Social Welfare in Germany: An Applied General Equilibrium Analysis," German Economic Review, De Gruyter, vol. 7(4), pages 363-388, December.
    10. Ashenfelter, Orley & Ashmore, David & Deschenes, Olivier, 2005. "Do unemployment insurance recipients actively seek work? Evidence from randomized trials in four U.S. States," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 53-75.
    11. Stéphane Mahuteau & P.N. (Raja) Junankar, 2008. "Do Migrants get Good Jobs in Australia? The Role of Ethnic Networks in Job Search," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages 115-130, September.
    12. Richard Blundell & Monica Costa Dias, 2000. "Evaluation methods for non-experimental data," Fiscal Studies, Institute for Fiscal Studies, vol. 21(4), pages 427-468, January.
    13. Bryson, Alex & Dorsett, Richard & Purdon, Susan, 2002. "The use of propensity score matching in the evaluation of active labour market policies," LSE Research Online Documents on Economics 4993, London School of Economics and Political Science, LSE Library.
    14. Denise J. Doiron, 2004. "Welfare Reform and the Labour Supply of Lone Parents in Australia: A Natural Experiment Approach," The Economic Record, The Economic Society of Australia, vol. 80(249), pages 157-176, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    social security payments; labour supply; Australian immigrants; employment of immigrants;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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